Are you seeking strategies to protect your wealth from market volatility, balance risk, and reward, or save on taxes when investing? High-net-worth individuals like yourself face complex challenges that call for a more thoughtful approach to wealth management.
For over 30 years, Jupiter Wealth has provided asset planning and investment management for high-net-worth individuals through our specialized wealth management services in Denver, Colorado.
In this guide, we’ll cover practical and prudent strategies to incorporate into your wealth management plan, helping you make informed investment decisions specific to the unique challenges of affluent individuals and families.
Core Investment Strategies for High-Net-Worth Individuals
Diversification
While concentrated investing can help create wealth, diversification plays a vital role in preserving wealth and enhancing the potential for steady returns across various market conditions. True diversification goes beyond the typical spread across stocks, bonds, and cash. It includes multiple asset classes and different investment approaches, each bringing unique benefits to your portfolio.
Here are some examples:
- Large-cap to small-cap stocks: Investments spread across large, mid, and small market capitalizations to capture growth potential across different types of companies.
- Investment styles and bonds: Diversify by incorporating various investment styles, such as growth, blend, and value strategies. Bonds also add diversification, spanning municipal, corporate, and government options across long- to short-term durations.
- International exposure: Investing in global markets can add resilience to your portfolio, reducing dependency on any single country’s economy and increasing access to diverse opportunities.
- Commodities: Commodities can hedge against inflation and provide a valuable layer of diversification, particularly during inflationary periods.
A diversification strategy should be designed to lower overall risk while still aiming for potential returns through different asset classes and investment approaches.
Asset Allocation
Asset allocation refers to the mix of investments within a portfolio customized specifically to fit your risk tolerance, time horizon, and financial objectives. Asset allocation is a foundational component of portfolio construction, helping high-net-worth individuals align assets with personal and financial goals.
Factors influencing asset allocation include:
- Risk tolerance: This is highly individualized and may evolve over time. Jupiter’s wealth managers in Denver will work closely with you to determine an optimal balance of risk and return.
- Time horizon: A longer investment horizon can accommodate higher-risk investments, while those nearing retirement may prefer more stability.
- Financial goals: Whether planning for legacy, philanthropy, or lifestyle needs, each goal requires a tailored asset allocation.
Tax-Efficient Investment Strategies
Taxes can significantly impact the long-term growth of a portfolio, especially for high-net-worth individuals who are often in higher tax brackets. Implementing tax-efficient strategies is essential to preserving wealth. Jupiter’s Denver investment advisors will analyze your tax situation and consider how to leverage tax-free and tax-advantaged accounts, which can help reduce your taxable burden.
Also, tax-loss harvesting is another potential strategy. By strategically selling investments at a loss to offset capital gains, you may be able to lower your taxable income. Asset placement is an important strategy that helps identify which investments are best suited for different accounts, whether taxable, tax-free, or tax-deferred.
With careful planning, Jupiter Wealth can help you structure your portfolio in ways that minimize tax implications while supporting long-term growth.
Long-Term Focus
Maintaining a long-term perspective isn’t a new idea and is often emphasized. However, market volatility can be very unsettling and can cause one to question even the best and highest-quality investment strategies.
A steady focus on long-term objectives can help avoid the pitfalls of reactive, short-term decisions. Wealth preservation typically requires patience, especially when managing a portfolio across multiple generations.
Undoubtedly, you’ve put in significant effort to attain your current financial success. Jupiter’s experienced Denver wealth management team is here to assist you and offer strategies aimed at preserving and growing your wealth.
Advanced Investment Strategies for High-Net-Worth Individuals
Alternative Investments
Alternative investments offer affluent individuals unique opportunities outside the traditional stock and bond markets. Private equity, hedge funds, and venture capital can give access to high-growth sectors, offering the potential for significant returns. However, these investments also carry added risk and are generally less liquid, meaning they can’t be readily converted to cash.
Alternative investments can enhance your overall portfolio, but choosing those that match your risk tolerance and financial goals is important. Jupiter Wealth can help evaluate the potential benefits and risks of these investments to determine if they fit well in your portfolio.
Impact Investing
For individuals interested in using their wealth to drive positive change, impact investing has become an increasingly attractive strategy. This approach focuses on generating social or environmental benefits alongside financial returns. High-net-worth investors can incorporate impact investments into their portfolios to support causes they care about, whether that’s renewable energy, affordable housing, or healthcare innovation.
Jupiter Wealth’s financial planners in Colorado can help you find impact investments that match your values if you’re interested in pursuing this type of investing.
Family Office Considerations
For families with substantial assets and multi-generational wealth, a family office model can provide centralized management of all financial affairs. This method offers a holistic way to manage investments, taxes, and other financial matters across generations, which is particularly valuable for complex family needs.
Jupiter Wealth brings decades of experience in managing multi-generational wealth and can tailor services to meet the evolving needs of your high-net-worth family. Our team of specialists can assist you in coordinating all aspects of your financial life, from real estate investments to insurance, estate planning, and even the acquisition of art and other collectibles.
Consider Jupiter Wealth Management in Denver
We understand that everyone has unique goals and challenges. That’s why we design investment strategies that align with your specific requirements and objectives. Our approach is to grow and protect our client’s wealth the same way we would on our own.
We use a disciplined and conservative philosophy of asset management. Our investment strategies include our proprietary investment models to provide access to top-tier hedge funds, private equity services, and alternative investments.
With a deep understanding of Denver’s affluent community, our experienced team provides comprehensive wealth management services to clients in Colorado and nationwide.
If you would like to learn more, schedule your free consultation today.
